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Laying the Legal Foundations for SIAM
1. Newcastle | Leeds | Manchester
Gareth Yates
12 September 2019
Service North Conference
SIAM – Laying the Legal Foundations
2. Newcastle | Leeds | Manchester
Overview
• Who is the Customer?
• How is the SIAM function to be delivered?
• Contracting models
• Key issues to address in contracts
• Why do Projects fail?
SIAM – Laying the Legal Foundations
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3. Newcastle | Leeds | Manchester
• End users
• Internal function – Intelligent Client Function
• External function – SIAM provider / hybrid
• What are the Customer's aims / objectives / required services?
• What does the Customer mean by "SIAM"?
• How do you measure success?
• Who measures success?
• When do you measure success?
• What if the Customer changes its' mind?
• Customer's budget – how will it pay for what it wants?
Who is the "Customer" and what does it want?
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Internal
• Resource }
• Skills } Internal non-binding statement
• Influence / accountability }
External
• Influence / accountability }
• Transfer of staff – TUPE } Non-binding or binding statement / contract
Hybrid
• Influence / accountability } Non-binding or binding statement / contract
How is the SIAM function to be delivered?
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How will Customer contract with Service Providers?
• Direct, bilateral contracts with each Service Provider
• Indirect, via a single prime Service Provider
How will delivering the Customer's objectives be captured?
• Operating Level Agreements
• Collaboration Agreement
How much Customer authority will be delegated to the SIAM provider?
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Monitoring / reporting
• Service Providers report to SIAM
• SIAM reports to the Customer
• Customer owns the data
• Frequency and content of reporting
• Harmonised reporting
Key issues to address in contracts
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Collaboration
• How will parties share information / when
• Key stakeholders / meetings
• Forum to raise good / bad practice
• How to agree on course corrections / service improvements
• Flexibility to update contracts – avoiding cost increases
Method to de-scope / re-allocate scope = cost neutral
• Requirement for "good faith" participation to resolve Customer issues
Fix first = settle later
Who pays / Customer guarantee / off-setting
Participation at no additional cost / even if not the cause of the issue
• Aspirational / motivational language = "have regard to…" = probably not contractually binding
Key issues to address in contracts
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SLAs
• Effective = clear and align with aims / objectives
• Measurable
What will they measure
Technical
People
Collaboration / behaviour
Who will measure and how will they measure
When will they measure
How is the service improved / when
Financial remedy / credit
• Rewards for meeting / exceeding requirements
Reluctance from Service Providers to accept risk relating to the action / inaction of other Service Providers
Key issues to address in contracts
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• Disputes
• Pre-requisite = clear contract
Roles and responsibilities
What is a "default"
Who is accountable for the default
• Remedies:
Effective reporting – avoid / minimise disputes
Service credits – avoids dispute - breach = payment
Remediation plan – activated for a defined breach / series of breaches
Step-in right – activated for serious breaches
Termination and exit
Key issues to address in contracts
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SIAM / Service Provider lock-in
• How easy to terminate
• How easy to modify
• How easy to replace
Consider:
• Personnel
• IT systems / tools / data / knowledge
• Timeframe to exit / procure replacement
• Exit plan
When agreed
Cost to exit
Collaboration between SIAM / Service Providers
Key issues to address in contracts
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• Reluctant collaboration across service providers = unclear delineation of responsibilities
and accountability
• Lack of transparency and incomplete understanding of end-to-end service level
performance
• Contractual compliance without innovation
• Impotent governance and multiple costly change orders for minimal efforts
• Labour-intensive reporting and inadequate data = hinders making fact-driven decisions
Why do multi-service provider projects fail?
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• Be realistic
• Focus on aims / objectives
• Compromise
• Incentivise Service Providers – with Customer and with each other
• People drive success not contracts
Summary
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